Summary
Honeywell International Inc. (HON) reported its third quarter and nine-month results for the period ending September 30, 2009. The company experienced a significant decline in net sales, down 17% for the quarter and 18% year-to-date compared to the prior year. This decline was primarily driven by lower sales volumes across all segments, reflecting the challenging macroeconomic environment. Despite the sales decrease, Honeywell managed to improve its gross margin percentage, indicating effective cost management. Net income attributable to Honeywell was $608 million for the quarter and $1,455 million year-to-date, down from $719 million and $2,085 million, respectively, in the comparable periods of 2008. Diluted earnings per share also saw a decline. The company's cash flow from operations remained robust, increasing slightly year-over-year, while cash used in investing activities decreased significantly due to lower acquisition spending. Honeywell also reported progress in managing its significant environmental and asbestos-related liabilities.
Financial Highlights
47 data points| Revenue | $7.70B |
| Cost of Revenue | $5.80B |
| Gross Profit | $1.86B |
| SG&A Expenses | $1.03B |
| Net Income | $592.00M |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Diluted) | 764.00M |
Key Highlights
- 1Net sales decreased by 17% in Q3 2009 and 18% year-to-date, primarily due to volume declines reflecting a challenging economic environment.
- 2Gross margin percentage improved to 24.7% in Q3 2009 and 24.5% year-to-date, up from 19.4% and 22.9% respectively in the prior year, driven by cost efficiencies and repositioning charges.
- 3Net income attributable to Honeywell decreased to $608 million for Q3 2009 and $1,455 million year-to-date, compared to $719 million and $2,085 million in 2008.
- 4Diluted EPS declined to $0.80 for Q3 2009 and $1.94 year-to-date, versus $0.97 and $2.79 in the prior year.
- 5Cash provided by operating activities increased to $2,615 million year-to-date, an improvement from $2,532 million in 2008, signaling strong operational cash generation.
- 6Acquisition spending significantly decreased, with cash used in investing activities falling to $850 million year-to-date from $1,670 million in 2008.
- 7The company continued to manage significant environmental and asbestos-related liabilities, with ongoing accruals and insurance receivable recognition.